Local Economic Development Concept: A Comparison between Indonesian Village-Owned Enterprises and Chinese Township and Village Enterprises

Dewi Ambarwati; Rachmad Safaa’at; Siti Hamidah; Rachmi Sulistyarini

doi:10.47814/ijssrr.v6i4.1163

Dewi Ambarwati University of Brawijaya Malang, East Java, Indonesia
Rachmad Safaa’at University of Brawijaya Malang, East Java, Indonesia
Siti Hamidah University of Brawijaya Malang, East Java, Indonesia
Rachmi Sulistyarini University of Brawijaya Malang, East Java, Indonesia

DOI: https://doi.org/10.47814/ijssrr.v6i4.1163

Keywords: TVE; BUM Desa; Economic Reform; Village; Pancasila

Abstract

This research was conducted to understand the concept of local economic development by comparing Township and Village Enterprises (TVE) in China with Village-Owned Enterprises (BUM Desa) in Indonesia. Given that today, local economic development is needed to strengthen the national economy, especially in Indonesia. BUM Desa and TVE are business entities initiated and owned by villages that broadly impact the general public's welfare. According to China's economic history, TVEs became the largest contributor to China's economic revival after the reform in 1978. Meanwhile, Indonesia has also experienced the same thing, namely the economic crisis in 1998 and the 2019 Corona Virus disease (COVID) pandemic, which caused global economic stagnation. This type of research is normative juridical research using a comparative approach, comparative legislation, and conceptual approaches. The results show that there are similarities between Indonesia and China in managing businesses at the village level, which lies in (1) local government participation in providing business opportunities and exports abroad; (2) institutional strengthening; and (3) natural resource management. Meanwhile, the government conditions. Differences lie in: (1) business management model: (2) economic policy direction; and (3) local government conditions.

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